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Advice sought for salary package to move to Singapore

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Liquorice
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Advice sought for salary package to move to Singapore

Post by Liquorice » Sat, 21 Nov 2020 12:36 am

Hi all,
Due to a company re-organisation, there is a very real possibility that a posting to Singapore may be offered to me. I would like your advice on what you think is an acceptable package for moving to Singapore.
I believe my package should be as follows:
1. Basic annual salary SGD 350K, which covers International Schooling for 2 kids (SGD 70K), housing allowance (SGD 96K per year), car allowance for 1 car (SGD 25K per year). I estimate Singapore taxation at around 18%;
2. Annual bonus of ca. SGD 100K, based on hitting the KPIs at 100%;
3. Full medical and dental insurance, including coverage for pre-existing conditions;
4. Insurance coverage for life, critical illness and disability for spouse and I;
5. 5 weeks holiday per year;
6. Moving expenses;

My current household package (we live in Scandinavia):
1. My gross salary (incl. annual bonus) is SGD 250K;
2. My wife is a dentist, and has a gross salary of SGD 200K. I have checked with the Singapore Dental Council, and she will be required to take a qualifying exam to be entitled to practise in Singapore. In other words, I cannot count on her working in Singapore in the 3-4 years we plan to be there. As a side remark, her university is recognised in Singapore for the medical profession;
3. 6 weeks holiday per year, not including public holidays;
4. Life, Critical illness and disability insurance premiums only cost us SGD1500 p.a.;
5. Schooling, including university is free for my children;
6. Medical and dental treatment is free at point of purchase (Medical is covered by the hefty taxation - around 45% of my gross income; and dental is free due to my wife being a dentist);
7. Some other facts - we own 2 cars, and can afford 3 overseas holidays a year. We put aside 12% of our gross income in a private pension. On top of that we have a state pension. Any years spent outside of the country will mean that we lose qualifying years and our state pension will be reduced;
8. I am able to put aside another SGD 20K p.a. for investments;

My questions is: Is this a realistic package to ask for? I work in a niche area of renewables that is about to explode in APAC over the next decade. There are no locals who can do the job I do, as the industry does not exist in Singapore.

TropicalExpat
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Re: Advice sought for salary package to move to Singapore

Post by TropicalExpat » Sat, 21 Nov 2020 9:27 am

Liquorice wrote:
Sat, 21 Nov 2020 12:36 am
Hi all,
Due to a company re-organisation, there is a very real possibility that a posting to Singapore may be offered to me. I would like your advice on what you think is an acceptable package for moving to Singapore.
I believe my package should be as follows:
1. Basic annual salary SGD 350K, which covers International Schooling for 2 kids (SGD 70K), housing allowance (SGD 96K per year), car allowance for 1 car (SGD 25K per year). I estimate Singapore taxation at around 18%;
2. Annual bonus of ca. SGD 100K, based on hitting the KPIs at 100%;
3. Full medical and dental insurance, including coverage for pre-existing conditions;
4. Insurance coverage for life, critical illness and disability for spouse and I;
5. 5 weeks holiday per year;
6. Moving expenses;

My current household package (we live in Scandinavia):
1. My gross salary (incl. annual bonus) is SGD 250K;
2. My wife is a dentist, and has a gross salary of SGD 200K. I have checked with the Singapore Dental Council, and she will be required to take a qualifying exam to be entitled to practise in Singapore. In other words, I cannot count on her working in Singapore in the 3-4 years we plan to be there. As a side remark, her university is recognised in Singapore for the medical profession;
3. 6 weeks holiday per year, not including public holidays;
4. Life, Critical illness and disability insurance premiums only cost us SGD1500 p.a.;
5. Schooling, including university is free for my children;
6. Medical and dental treatment is free at point of purchase (Medical is covered by the hefty taxation - around 45% of my gross income; and dental is free due to my wife being a dentist);
7. Some other facts - we own 2 cars, and can afford 3 overseas holidays a year. We put aside 12% of our gross income in a private pension. On top of that we have a state pension. Any years spent outside of the country will mean that we lose qualifying years and our state pension will be reduced;
8. I am able to put aside another SGD 20K p.a. for investments;

My questions is: Is this a realistic package to ask for? I work in a niche area of renewables that is about to explode in APAC over the next decade. There are no locals who can do the job I do, as the industry does not exist in Singapore.

Does your salary have the schooling/car etc included in the $350k or will they provide that in addition? My English may not be that great so I might have misunderstood.

lot286
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Re: Advice sought for salary package to move to Singapore

Post by lot286 » Sat, 21 Nov 2020 4:12 pm

More importantly do you have a choice to negotiate the package?

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ProvenPracticalFlexible
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Re: Advice sought for salary package to move to Singapore

Post by ProvenPracticalFlexible » Mon, 23 Nov 2020 12:14 pm

Is that proposed 350k salary, or salary and the listed allowances together?

Kids International School fees definitely and housing if it's covered is good. 8k per month is pretty good for housing, you can survive with much less, but if you can get that why not.
Car allowance maybe not needed, but transport allowance to cover taxis etc.

Anyway you should ask more than you are getting now, even with the tax rate difference, just to make it financially attractive for the family, as you correctly stated that your wife is unlikely to be working here, or at least it will take some time before she could work.

The regular medical and dental costs are not that high actually. For a family of 4 normal years I don't spend more than 2k$ (dentals visits, and GPs when sick, occasional specialist visit).

But for hospitalization for emergencies and any operations needed can cost a lot, and for that a good insurance is needed.

Your tax rate will be probably lower than 18% but better count higher, so there won't be disappointments. 18% tax rate in Singapore would require about 650kS$ taxable income (and no deductions of any kind).

You should be able to save some money for your own investments and retirement with that level of salary (I'd rather own my retirement investments directly, more reliable than the state pensions in Scandinavia that may change worse over the years, unless you are from Norway of course) and holidays when ever travelling is possible again.

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